Capital Formation Down 11.8%

The rate of capital formation for machinery and equipment saw an 11.8% decline during the last fiscal year (March 2019-20). 
According to a report by the Statistical Center of Iran, the capital formation rate stood at -18.4% in Q1 (March 21-June 21, 2019), -14.2% in Q2 (June 22-Sept. 22, 2019), -9.2% in Q3 (Sept. 23-Dec. 21, 2019) and -4.3% in Q4 (Dec. 22, 2019-March 19). 
Capital formation is a term used to describe the net capital accumulation during an accounting period for a particular country. The term refers to additions of capital goods, such as equipment, tools, transportation assets and electricity. 
Countries need capital goods to replace older ones that are used to produce goods and services. If a country cannot replace capital goods as they reach the end of their useful lives, production declines. 
Generally, the higher the capital formation of an economy, the faster an economy can grow its aggregate income.